Atlantic Seaboard, City Bowl and mixed-use still attracting buyers

Some buyers are holding out for the economic situation to improve before buying

It is no secret the economy is struggling and the property market is being hit hard. Buyers are looking for properties priced lower than they were a few months ago, and sellers are having to drop their prices to secure sales.

Property value growth is also dropping, and some buyers are holding out for the economic situation to improve before buying. While this is affecting most of the market, some areas have a reputation for bucking the trend. Two of these are the Atlantic seaboard and City Bowl, says Ian Slot, Seeff managing director in these areas.

Prices in these areas have continued rising “at stellar rates”. A study published by FNB early last year showed that while average house prices in South Africa had gone nowhere since 2012, Atlantic seaboard prices more than doubled, and increased sevenfold since 2001, ending last year on an average growth of 22.9%, Slot says.

The study also shows that: 

• City Bowl prices rose by 590.95% over 15 years (2002-2017) and 113.28% over five years (2012-2017), averaging at 15%-20% growth annually.

• Atlantic seaboard prices grew by 734.58% over the 15-year period and 122.78% over five years, with annual growth of 16%-26%.

Demand is also still strong for smaller, rural Winelands properties, says George Cilliers, Winelands co-principal for Lew Geffen Sotheby’s International Realty. Although sales volumes have dipped, they are still receiving a steady flow of inquiries from international and local buyers, many of whom are from other provinces.

“Properties receiving the most attention are smallholdings and guest farms, especially those with venue and/or accommodation facilities. The properties that have become more difficult to move are larger farms and those without substantial or sufficient buildings and houses on them.”

Mixed-use developments are also bucking trends, says Nicholas Stopforth, managing director Amdec Group, the developers of Cape Town’s Harbour Arch.

“Developments of this type are in parallel with global demand for investment in locations where you can live, work and play. They also boast fantastic returns,” Stopforth says. These types of developments are also growing in popularity among renters, says Odette Maartens, manager of Dogon Group Properties’ rentals division.